HB 691-FN-A – AS INTRODUCED
2009 SESSION
09/01
HOUSE BILL 691-FN-A
AN ACT relative to the New Hampshire estate tax.
SPONSORS: Rep. McEachern, Rock 16; Rep. Shattuck, Hills 1; Rep. Skinder, Sull 1
This bill changes the rate of the New Hampshire estate tax to 8 percent of the gross value of the portion of the decedent’s taxable estate that exceeds $2,000,000.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0799
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to the New Hampshire estate tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Taxation of Transfers of Certain Estates. RSA 87:1 is repealed and reenacted to read as follows:
87:1 Tax Imposed; Exemption.
I. An estate tax is hereby imposed upon the transfer of the estate of every decedent leaving a taxable estate for which the gross value after allowable deductions, as defined by the Internal Revenue Code of 1986, is greater than $2,000,000, and who has property within this state.
II. The first $2,000,000 of the gross value of the decedent’s estate shall be exempt from the estate tax.
III. The amount of the New Hampshire estate tax shall be equal to 8 percent of the gross value of the portion of the decedent’s taxable estate that exceeds the exemption in paragraph II.
IV. If only a portion of the decedent’s estate is located in this state, the tax shall be determined as follows:
(a) For a decedent who, at the time of death, was a resident of this state, the New Hampshire estate tax shall be reduced by an amount determined by multiplying the entire amount of the tax by the percentage which the gross value of the real and tangible property portion of the decedent’s estate located outside of this state bears to the gross value of the entire estate.
(b) For a decedent who, at the time of death, was not a resident of this state, the New Hampshire estate tax shall be determined by multiplying the entire amount of the tax by the percentage which the gross value of the real and tangible property portion of the decedent’s estate located in this state bears to the gross value of the entire estate.
2 Authority to Audit. Amend RSA 87:36, II to read as follows:
II. The department may, on its own motion, undertake such an audit upon written notice to the executor, administrator, or legatee within the statute of limitations as provided in RSA 21-J:29[, except that where a change is reported as provided in RSA 87:10, such notice shall be provided within 6 months of the receipt of such amended return].
3 Repeal. The following are repealed:
I. RSA 87:7, relative to intent of chapter.
II. RSA 87:9, relative to chapter void, when.
III. RSA 87:10, relative to adjustments.
4 Effective Date. This act shall take effect January 1, 2010.
LBAO
09-0799
01/23/09
HB 691-FN-A - FISCAL NOTE
AN ACT relative to the New Hampshire estate tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will increase state general fund revenue by $5,053,231 in FY 2010 and $10,106,462 in FY 2011 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county and local expenditures.
METHODOLOGY:
This bill changes the rate of the New Hampshire estate tax to 8% of the gross value of the portion of the decedent’s taxable estate that exceeds $2,000,000. The Department of Revenue Administration’s estimate is based on federal estate tax data for the tax year 2006 detailing the adjusted gross taxable estates and the decedent state codes (DSC). The Department states if the proposed legislation were applied to the 2006 tax base of taxable estates with a DSC of New Hampshire, it would increase state revenue by $10,106,462 per annum. Due to the effective date of the proposed legislation of January 1, 2010, the Department estimates ˝ of the annual revenue projected would be realized in FY 2010 and the full revenue estimate would be realized in FY 2011 and each year thereafter.
The Department also states there may be additional revenue generated from taxable estates without a DSC of New Hampshire as a result of the provision within the proposed legislation that proportions the tax based on an estate’s real and tangible property located within the state. Accordingly, the Department estimates state revenue could increase by as much as $22,090,532 per annum as a result of the proposed legislation.